Share sales boost Te Huarahi Trust result
|24 Nov 2015 14:18 PM|
The auditors of the Maori spectrum trust say Te Huarahi Tika is only a going concern if its sells more of its shares in third mobile operator Two Degrees.
The trust held its annual meeting in Wellington yesterday, reporting an increase in capital from $6 million to $9.5 million.
But it was not able to say when it expected it investment to make a profit.
The meeting starting with Te Huarahi Tika Trust chair Daphne Luke barring Radio Waatea from recording the public hui.
What followed was an upbeat financial report - a $15.8m debt to Two Degrees majority shareholder Trilogy International had been paid off with the transfer of 11 million shares - leaving the trust with just 2 percent of the phone company.
The deal was done after more than 70 Maori entities turned down an offer to buy in.
The debt was taken on in an effort to stop the Maori stake being diluted while the company was expanding its capital to build its network.
Trustees insist Te Huarahi Tika would have been in a worse position if it had not gone down that path.
Another 289 shares were sold to Trilogy in December for $446,686 "to clear al trading debts and to provide future investment options".
The trust says there’s enough in the kitty for the next 12 months, so the business is a going concern.
Auditors BDO Spicer say that’s a big if, and the trust’s ability to meet its ongoing commitments depends on its ability to sell more shares.
Copyright © 2015, UMA Broadcasting Ltd: www.waateanews.com